Perseus Wins

-- Publishers Weekly, 2/16/2007

The bankruptcy court has approved Perseus's offer to take over the distribution contracts of all PGW publishing clients that have signed distribution agreements with the company. The decision, handed down late Friday afternoon, ends a spirited contest between Perseus and NBN to assume distribution for the PGW publishers. More than 100 publishers, who collectively constitute about 85% of the total amount of monies owed to PGW clients in the AMS bankruptcy, have signed agreements with Perseus. "We are excited to move forward as quickly as possible to write checks to PGW clients and to provide some certainty for PGW employees," said Perseus CEO David Steinberger.

Steinberger said the final agreement will "close as quickly as possible." He said his immediate goal will be to work with the PGW team to ensure as much continuity of services for publishers as possible.

NBN head Jed Lyons, whose company also made an offer for the PGW clients, said he was "very disappointed" to not have the opportunity to work with the PGW publishers, but congratulated Perseus on its victory.

With today's decision, publishers that have not signed with Perseus are expected to be released from their PGW contracts very soon and will be free to sign deals with other distributors, including NBN.